Record bonus for Ferrari employees

Record bonus for Ferrari employees

Ferrari has announced the highest ever production bonus for its employees for 2013, amounting to 4,096 euro (Rs. 3.39 lakh). Production bonus has been announced in recognition of excellent financial results achieved last year.

This bonus comes as a result of an agreement signed with the unions in 2012 that is linked to a grid of operational values with the objective of sharing the company’s success. Employees were given a production bonus along with an additional three-yearly bonus, and Chairman Luca di Montezemolo has announced its extension for three more years.

Ferrari, in 2013, adopted a strategy to reduce production to under 7,000 cars a year to preserve their exclusivity and value over time. This strategy will continue this year and well into 2015. The company’s brand value has risen 12 percent to USD 4 billion (Rs. 24,108 crore) despite the cut in production. In 2013, Ferrari’s revenue increased by a record five percent and trading profits rose by 8.3 percent, another record figure. Ferrari’s net financial position also stood at an all-time high at the end of 2013.

Ferrari has said it is preparing to spend 1.23 billion pounds (Rs. 12,312 crore) over the next five years on R&D, 70 percent of which will be spent on “efficiency gains” — which is expected to mean further innovations in lightweight structures and downsized turbocharged engines. The company has a remarkable 1.12 billion pounds (Rs. 11,211 crore) in cash reserves to back this up.

Ferrari was once again voted as the world’s most powerful brand in the 2014 Brand Finance Global 500 report, earlier this year. The carmaker scores highly on a wide variety of measures on Brand Finance’s Brand Strength Index, from desirability, loyalty and consumer sentiment to visual identity, online presence and employee satisfaction.